My hair thinned out a lot the first time I did this diet. I'm on it 6weeks now and have not had the same problem yet. Just a little thinning. There are some threads in the TFR100% forum.
Also you can take a supplement called Silica while doing TFR. Holland and Barrett have them or there is Nourkrin and Vivisacl but are pricey.
Vitabiotics do one called Perfectil that's very good too. Anyone who had this problem said thier hair came back once eating again. I think it's that your hair stops growing while on it as opposed to falling out.